China's central bank pledges targeted, effective monetary policy

BEIJING, Feb. 24 (Xinhua) -- China's central bank on Friday pledged to make the prudent monetary policy targeted and effective to provide sustainable support to the real economy.

In its fourth-quarter monetary policy report, the People's Bank of China (PBOC) said it will intensify efforts to expand domestic demand while ruling out the possibility of "flood irrigation."

The PBOC will guide financial institutions to strengthen financial services in fields including inclusive finance, scientific and technological innovation, and green development, to push the consumption recovery and tap the economy's potential.

Efforts will continue to deepen market-based interest rate reforms to lower financing costs for businesses and consumption credit costs for individuals.

The central bank said it would keep a close eye on the trends of inflation in the future and move to ensure the supply and price stability of grain and energy.

The renminbi's exchange rate will remain generally stable at a reasonable and equilibrium level, and the bottom line of no systemic financial risk will be safeguarded, according to the report.